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Index of Eight Core Industries

Context

The combined Index of Eight Core Industries increased by 12.7 per cent (provisional) as compared to the Index of June 2021.

About

What are the ‘eight-core sectors’ of India?

  • In India, there are eight sectors that are considered the core sectors.
  • The eight-core sectors of the Indian economy are electricity, steel, refinery products, crude oil, coal, cement, natural gas and fertilizers.
  • Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade is responsible for the release of the Index of Eight Core Industries.
    • It maps the volume of production in the eight most fundamental industries of our economy.

Components to calculate the ICI

  • Coal – Coal production, excluding Coking coal.
  • Crude Oil – Total crude oil production.
  • Natural Gas – Total production of natural gas.
  • Refinery Products – Total refinery production.
  • Fertilizer – Urea, ammonium sulphate, calcium ammonium nitrate, complex grade fertilizer, and single superphosphate, among others.
  • Steel – Production of alloy and non-alloy steel only.
  • Cement – Production in large plants and mini plants.
  • Electricity – Electricity generation of thermal, nuclear, hydro, imports

Key-highlights of the Index of Eight Core Industries:

  • Petroleum Refinery has the highest weightage in the index of eight core industries followed by Electricity generation, Steel, Coal, Crude Oil Production, Natural Gas, Cement Production and Fertilizers respectively.
  • The Eight Core Industries comprise 27 percent of the weight of items included in the Index of Industrial Production (IIP).
  • At present, the base year for the Index of Eight Core Industries (ICI) index is 2011-12.
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